Flat Steel Prices Show Mild Changes Amid Demand Recovery and Import Pressure

Key Takeaways

• Flat Steel Demand Improving: Recovery is driven by automotive, construction, and infra sectors, with demand projected to grow further in 2025.
• Safeguard Duty Boosts Sentiment: A 12% safeguard duty on imports offers relief to domestic producers facing stiff global competition.
• Production and Costs Rise: Steel production is up 7% YoY in Q1CY25, though input costs (iron ore, coking coal) are climbing.
• Imports Still a Threat: Cheap imports from China, Japan, and South Korea remain a concern, prompting potential anti-dumping actions.
• Industry Outlook Positive: Despite volatility, long-term growth is expected, driven by “Make in India” and infrastructure investments.

Flat Steel Price:

Markets reports some price changes in HRC & CRC as compared to the previous day in a few geographical locations. The prices of flat products in various markets are as below:

Location         HRC      CRC    PM PLATE

NCR               52000    59000      52800

Mumbai          55000    62250      55500

Ahmedabad   54500    57000      55000

Chennai         54000    61000      54500

Kolkata          51500    59000      52500

Hyderabad    56000    61500      56500

Flat Steel Demand and Supply:

In May 2025, India's hot-rolled coil (HRC) market is witnessing moderate demand recovery, driven by key sectors like automotive, construction, and infrastructure. While demand is expected to rise, challenges include pressure from cheap imports, particularly from China. The government is likely to implement anti-dumping measures to protect domestic producers, potentially stabilizing prices. Major steelmakers are expanding capacities, and long-term demand is expected to grow with infrastructure development and "Make in India" initiatives. However, competition from imports remains a key concern.

Flat Steel News

Domestic steel and raw material prices in India witnessed a mild recovery in May 2025, aided by a 12% safeguard duty on flat steel imports. This move slightly boosted domestic sentiment, though global trade tensions and declining export prices limited overall optimism. Steel production rose 7% year-on-year in Q1CY’25 despite earlier mill shutdowns to manage supply. Input costs for iron ore, pellets, and coking coal increased, while pig iron and ferro alloy prices continued to face pressure.

Expert Opinion:

As of May 2025, steel distributors in India face a complex market with both growth potential and challenges. Domestic steel demand is expected to grow by 8-9% in 2025, driven by the housing and infrastructure sectors. However, distributors are concerned about rising imports from China, South Korea, and Japan, prompting the Indian Alloy Steel Producers' Association to consider anti-dumping actions. Regulatory changes, such as import restrictions on metallurgical coke, have disrupted supply chains, while price volatility due to cheap imports affects profit margins. Despite these challenges, the long-term outlook remains positive, depending on how the industry adapts to these issues.